SHARES in Manchester engineering group Renold slumped almost 20 per cent today after its second profits warning of the year.

The Wythenshawe-based company, which manufactures chains and gears used in rollercoasters, ships' engines and London Tube station escalators, said several factors meant full-year profits were likely to fall short of expectations.

Renold cited steel shortages in the UK and Germany, which have affected operational efficiency, along with lower-than-expected sales in its automotive systems business. In early trading, Renold shares fell 18.84 per cent, or 13p, to 56p, wiping é9m off its market value of é47.83m.

The company will post its results for the year to March 31 on June 13.

It issued a profits warning in January when it blamed the high cost of raw materials and adverse currency movements.

Renold also said it had started discussions over the future of its factory at Burton on Trent. The company operates in 18 countries. It has a workforce of 2,700, of whom 1,000 are based in the UK.